Fluid Milk and Cream - Western U.S. Report 52
Milk production in California remains strong. Class I sales are lower during this holiday week. A lot of milk is clearing through the dryers and/or the churns in response to multiple plants' closures for the holiday.
In Arizona, milk output has been flat. Plant managers report no issues with managing milk supplies. Fluid milk intakes have declined with the closing of educational institutions for the holidays. A few churns that were off have been running since the beginning of the week to help clear the increase in cream availability. Class II requests are down.
In New Mexico, balancing plants are actively being run to make sure that all milk produced finds a place to go. One Class IV manufacturing plant unexpectedly went down during the week, creating more milk supplies than anticipated during the holiday. However, all milk loads in the state were taken care of with no major hitches. Class I and II demands have declined, which is of no surprise to handlers.
Pacific Northwest milk production is steady to higher. Favorable weather is supportive of cow comfort. Manufacturers have plenty of milk for most processing needs. With school milk bottling halted for winter break and a few processors running short schedules over the holiday, milk handlers expect a surge of available milk. However, industry contacts do not expect this will be overwhelming.
Milk production in the mountain states of Idaho, Utah, and Colorado, is strong and growing. Milk handlers are juggling loads in order to keep up with available supplies. The winter holidays will add to the stress, and holdovers are expected throughout the week. Some industry contacts think milk flows should be back to normal by the end of the work week.
The condensed skim market tone has been flat in the West. Supplies are trending higher. Therefore, manufacturers are actively drying. Cream demand has almost vanished during this holiday season.
Some processors are churning their cream instead of selling at a discount. Cream processing is very busy at most plants. Cream multiples are 0.95-1.18. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/20/2019 to 12/26/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $1.89 $1.93 $2.60 Organic $3.99 $4.26 $4.57 Regional (Conventional) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.98 $3.39 $2.61 Organic $5.69 $6.99 $5.21 Regional (Conventional) Wtd. Ave. Low High Midwest $3.10 $2.50 $3.29 Northeast $3.49 $3.49 $3.49 Northwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00 Southwest $5.39 $5.39 $5.39 Western U.S., F.O.B. Cream Multiples Range - All Classes: 0.9500 - 1.1800